Should You Sell Home or Rent It Out?
If you are looking to move into a new property, then you may be faced with a difficult decision about what to do with your current home. You could sell it and use the proceeds to put it towards your new house, but there is also an opportunity to turn it into a highly lucrative side hustle. By renting it out to tenants, you will have a passive income source, which requires only a minimal amount of ongoing work on your part.
Deciding whether to sell or to rent out your home is a tough choice. Both options have their pros and cons, and it is up to you to decide which is best. To help you make your choice, here are some reasons to sell and some reasons to rent.
When you sell a home, you make a great deal of money in one go, and that’s it. But if you can rent out your property, you will have passive income coming in for as long as you decide to be a landlord. You do need to make sure you fully understand landlord tenant law, and also be aware that if anything goes wrong it will impact your income.
Although you will have responsibilities, in the form of maintenance, finding tenants, and dealing with any issues, you will most likely be able to manage these tasks on the side while also keeping a full-time job if you wish. And if you just want the income without the hassle, you can hire a property management company to take care of everything for you.
House prices generally rise over time, and while you are renting it out to tenants, your old home is an asset in your possession that is constantly increasing in value. As long as you take care of it and carry out any repairs promptly if you ever decide to sell it, you will likely make more money in the future than you would by selling right now.
Renting out a home requires a lot of work on your part. You have to collect rent, carry out maintenance and repairs, find new tenants, deal with complaints, fill in paperwork and, in some circumstances, even evict tenants, or begin legal proceedings.
When you sell your house, you can just move on and not worry about it. Once it’s gone, it’s gone. You may have to find a realtor to help you sell it, but if you find a good discount realtor with a flat fee listing, you can avoid spending too much money and time on the process. This way, you can focus all your energy on buying your new home and turning it into the perfect place to live.
More money upfront
A home costs a lot of money, and by selling it right away, you will have more money to spend on your next home. If you decide to rent, you will need a lot of capital upfront as it will take you a long time to make a lot of money from rental income.
As you can see, there are good reasons to take either path, but the decision you make will depend on several factors. You will have to take your current financial and personal circumstances into account when making your choice.